Flybe Group plc is pleased to announce that today Flybe Limited, a wholly-owned subsidiary, signed an agreement with GOAL German Operating Aircraft Leasing GmbH & Co. KG ("GOAL") (the "Agreement") to extend the leases of five Bombardier Q400 turboprop aircraft, which were otherwise due to expire between August 2018 and January 2019.
Flybe will extend the leases on these aircraft with the last aircraft to expire in 2024 for a net cash consideration of $24.3m payable over the term of the leases. The lease extension provides Flybe Limited with immediate benefits, including significantly reduced lease rental payments and reduced cash security deposit requirements.
The Agreement is in line with the fleet plan announced on 16 May 2018 to retain the Bombardier Q400 as Flybe's core aircraft and to extend the service life of Flybe's existing Q400 fleet where economic to do so, in order to maintain a fleet of 70 aircraft. The Agreement with GOAL will allow Flybe to secure this capacity in the medium term on a much-improved commercial basis.
Ian Milne, Group CFO of Flybe commented "I am pleased that we have secured the continued use of these five relatively young Q400 aircraft and that we can continue to work with GOAL This supports the retention of the Bombardier Q400 aircraft as our core fleet type, but importantly also provides cost efficiencies in line with our focus on costs."
Jochen Baltes, Managing Director of GOAL commented "The lease extension for our five Q400 aircraft was certainly our first choice for the ten-year-old aircraft in best operating conditions. We are delighted to keep Flybe as our valued airline customer and are sure that the upcoming years of the extended lease will run as smoothly for all parties involved as the past ten years have."